Question
77:
Kwality Hospitality Ltd. incorporated with
authorised capital of `10,00,000, 1,00,000
equity shares of `10 each, issued 50,000
equity shares for subscription payable `4 on application,`3 on allotment and
balance as first and final call. The shares were subscribed, and due amounts
were received except first and final call on 4,000 shares. These shares were
forfeited. Later, half the shares were reissued as fully paid-up and `4,000 were transferred to Capital
Reserve.
Pass the Journal entry for reissue of shares.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (50,000×4) |
Dr. |
|
2,00,000 |
|
|
|
To Share Application A/c |
|
|
|
2,00,000 |
|
|
(Being share application money received) |
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
2,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
2,00,000 |
|
|
(Being share application money
transferred to share capital ) |
|
|
|
|
|
|
Share Allotment A/c (50,000×3) |
Dr. |
|
1,50,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,50,000 |
|
|
(Being allotment due) |
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,50,000 |
|
|
|
To Share Allotment A/c |
|
|
|
1,50,000 |
|
|
(Being share allotment money
received) |
|
|
|
|
|
|
Share First and Final A/c (50,000×3) |
Dr. |
|
1,50,000 |
|
|
|
To Share Capital A/c |
|
|
|
1,50,000 |
|
|
(Being first and final call due) |
|
|
|
|
|
|
Bank A/c (46,000×3) |
Dr. |
|
1,38,000 |
|
|
|
Calls-In-Arrears A/c (4,000×3) |
|
|
12,000 |
|
|
|
To Share First and Final A/c (50,000×3) |
|
|
|
1,50,000 |
|
|
(Being share First and Final money
received except 4,000 shares) |
|
|
|
|
|
|
Share Capital A/c (4,000×10) |
Dr. |
|
40,000 |
|
|
|
To Forfeited Shares A/c (4,000×7) |
|
|
|
28,000 |
|
|
To Calls-In-Arrears A/c (4,000×3) |
|
|
|
12,000 |
|
|
(Being share forfeited for First
and Final Calls of 4,000 shares) |
|
|
|
|
|
|
Bank A/c (2,000×5) |
Dr. |
|
10,000 |
|
|
|
Forfeited Shares A/c (2,000×5) |
Dr. |
|
10,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Being 2,000 shares forfeited
reissued as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
4,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
4,000 |
|
|
(being balance in Forfeited Shares
account of reissued shares transferred
to Capital Reserve 28,000×2,000÷4,000= 14,000-10,000=4,000) |
|
|
|
|
|
|
|
|
|
|
|
Question
78:
Park Hospitality Ltd. incorporated with authorised
capital of `15,00,000, 1,50,000
equity shares of `10 each, issued
1,00,000 equity shares for subscription payable `4 on application, `3 on allotment and
balance as first and final call. The shares were subscribed, and due amounts
were received except first and final call on 4,000 shares held by Pawan. Rakesh
holding 2,000 shares paid call on his shares along with allotment money. Shares
of Pawan were forfeited. Later, half the
shares were reissued as fully paid-up and `4,000 were transferred to Capital
Reserve. Pass the Journal entry for reissue of shares.
Answer:
Issued and Subscribed Capital
1,00,000 shares of `10 each
Payable as:
|
` |
4 |
on application |
|
` |
3 |
on
allotment |
|
` |
3 |
on
first and final call |
|
|
10 |
|
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (1,00,000×4) |
Dr. |
|
10,00,000 |
|
|
|
To Share Application A/c |
|
|
|
10,00,000 |
|
|
(Being share application money
received) |
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
10,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
10,00,000 |
|
|
(Being share application money
transferred to share capital ) |
|
|
|
|
|
|
Share Allotment A/c (1,00,000×3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
3,00,000 |
|
|
(Being allotment due) |
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,06,000 |
|
|
|
To Share Allotment A/c |
|
|
|
3,00,000 |
|
|
To Share First and Final A/c (2,000×3) |
|
|
|
6,000 |
|
|
(Being share allotment money
received and along with, Rakesh holding 2,000 shares for First and Final call) |
|
|
|
|
|
|
Share First and Final A/c (1,00,000×3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
3,00,000 |
|
|
(Being first and final call due) |
|
|
|
|
|
|
Bank A/c (94,000×3) |
Dr. |
|
2,82,000 |
|
|
|
Calls-In-Arrears A/c (4,000×3) |
|
|
12,000 |
|
|
|
To Share First and Final A/c (46,000×3) |
|
|
|
2,94,000 |
|
|
(Being share First and Final money
received except 4,000 shares) |
|
|
|
|
|
|
Share Capital A/c (4,000×10) |
Dr. |
|
40,000 |
|
|
|
To Forfeited Shares A/c (4,000×7) |
|
|
|
28,000 |
|
|
To Calls-In-Arrears A/c (4,000×3) |
|
|
|
12,000 |
|
|
(Being share forfeited for First
and Final Calls of 4,000 shares) |
|
|
|
|
|
|
Bank A/c (2,000×5) |
Dr. |
|
10,000 |
|
|
|
Forfeited Shares A/c (2,000×5) |
Dr. |
|
10,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Being 2,000 shares forfeited
reissued as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
4,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
4,000 |
|
|
(being balance in Forfeited Shares
account of reissued shares transferred
to Capital Reserve 28,000×2,000÷4,000= 14,000-10,000=4,000) |
|
|
|
|
|
|
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|
Question
79:
Grof ers Ltd. having authorised capital of `25,00,000, issued 2,00,000 equity shares
of 10 each for subscription payable `4 on application, `3 on allotment and
balance on first and final call. The shares were subscribed, and due amounts
were received except first and final call on 4,000 shares held by Rana. These
shares were forfeited. Later, half the shares were reissued as fully paid-up
and 14,000 were `transferred
to Capital Reserve. Pass the Journal entry for forfeiture and reissue of shares.
Answer:
Issued and Subscribed Capital
1,00,000 shares of `10 each
Payable as:
|
` |
4 |
on application |
|
` |
3 |
on
allotment |
|
` |
3 |
on
first and final call |
|
|
10 |
|
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
Bank A/c (1,00,000×4) |
Dr. |
|
10,00,000 |
|
|
|
To Share Application A/c |
|
|
|
10,00,000 |
|
|
(Being share application money
received) |
|
|
|
|
|
|
Share Application A/c |
Dr. |
|
10,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
10,00,000 |
|
|
(Being share application money
transferred to share capital ) |
|
|
|
|
|
|
Share Allotment A/c (1,00,000×3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
3,00,000 |
|
|
(Being allotment due) |
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,06,000 |
|
|
|
To Share Allotment A/c |
|
|
|
3,00,000 |
|
|
To Share First and Final A/c (2,000×3) |
|
|
|
6,000 |
|
|
(Being share allotment money
received and along with, Rakesh holding 2,000 shares for First and Final call) |
|
|
|
|
|
|
Share First and Final A/c (1,00,000×3) |
Dr. |
|
3,00,000 |
|
|
|
To Share Capital A/c |
|
|
|
3,00,000 |
|
|
(Being first and final call due) |
|
|
|
|
|
|
Bank A/c (94,000×3) |
Dr. |
|
2,82,000 |
|
|
|
Calls-In-Arrears A/c (4,000×3) |
|
|
12,000 |
|
|
|
To Share First and Final A/c (46,000×3) |
|
|
|
2,94,000 |
|
|
(Being share First and Final money
received except 4,000 shares) |
|
|
|
|
|
|
Share Capital A/c (4,000×10) |
Dr. |
|
40,000 |
|
|
|
To Forfeited Shares A/c (4,000×7) |
|
|
|
28,000 |
|
|
To Calls-In-Arrears A/c (4,000×3) |
|
|
|
12,000 |
|
|
(Being share forfeited for First
and Final Calls of 4,000 shares) |
|
|
|
|
|
|
Bank A/c (2,000×10) |
Dr. |
|
20,000 |
|
|
|
To Share Capital A/c (2,000×10) |
|
|
|
20,000 |
|
|
(Being 2,000 shares forfeited
reissued as fully paid-up) |
|
|
|
|
|
|
Forfeited Shares A/c |
Dr. |
|
14,000 |
|
|
|
To Capital Reserve A/c |
|
|
|
14,000 |
|
|
(Being full amount Forfeited on
2,000 Shares reissued, transferred to Capital Reserve
28,000×2,000÷4,000= 14,000-14,000=Nil) |
|
|
|
|
|
|
|
|
|
|
|
Question 80:
A share of ` 100 issued at a premium of ` 10 on which `
80 (including premium) was called and `
60 (including premium) was paid, has been forfeited. This share was afterwards
reissued as fully paid-up for `
70 . Give Journal entries to record the above.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ` |
Credit ` |
|
|
|
|
|
|
|
|
|
|
Share Capital A/c (` 80 – 10 premium) |
Dr. |
|
70 |
|
|
|
To Share Forfeiture (`
60 – 10 premium) |
|
|
50 |
|
|
|
To Calls-In-Arrears A/c |
|
|
20 |
|
|
|
(A share of `
100 on which ` 70 called excluding the amount of securities premium ` 10, forfeited for non-payment of `
20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
70 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
30 |
|
|
|
To Share Capital A/c |
|
|
100 |
|
|
|
(A share of `
100 re-issued at ` 70 as fully paid-up) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
20 |
|
|
|
To Capital Reserve A/c |
|
|
20 |
|
|
|
(Balance in Share Forfeiture after
re-issue transferred to Capital Reserve) |
|
|
|
|
|
|
|
|
|
|
|
Ts Grewal Solution 2024-2025
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Class 12 / Volume – II